6 Retention Strategies for Restaurant Employees

Employer Articles / July 5, 2022

Is the Great Resignation hitting close to home?

You’re not alone. A million restaurant employees quit their jobs in November 2021 alone, marking a record-breaking month for employment separations. Coming at the tail end of the COVID-19 pandemic, it’s just another challenge that restaurant owners must contend with.

By taking steps to retain your restaurant employees, you can take the sting out of the Great Resignation and keep more of your workforce.

Offer Better Pay and Benefits

It’s not always what employers want to hear, but it’s what their employees are saying. A survey by PwC said that job searchers’ top reason for finding a new job is better pay, followed by better benefits.

This can be difficult, especially in the current economic climate where inflation is taking its toll on restaurant profit margins. But any employer benefits like health insurance, paid time off, or performance bonuses can help employees to feel valued and make it easier for them to find work-life balance without leaving the industry. 

When assessing these additional costs, remember that increased retention comes with reduced costs of hiring and training new employees. The estimated cost of replacing a single restaurant employee is $5,864. A 20-person restaurant with 75% turnover (the average turnover rate pre-pandemic) could be losing nearly $90,000 annually in replacing employees!

Create Opportunities for Growth

It’s easy to get started in the restaurant industry. But it can be a challenge to get to the next level. Restaurants that invest in their employees’ growth earn greater loyalty, plus they get a more experienced workforce.

Restaurants may choose to offer onsite education, like a sommelier presentation for better wine knowledge, or a butchery class with the executive chef for greater expertise in beef cuts. Restaurants could also consider offering tuition reimbursement for employees who seek a degree or diploma in culinary school or a hospitality program. 

Standardize Onboarding and Training

Some restaurants take a loose approach to training. They assign the new hire to one of their most seasoned staff members and trust that proper training is taking place.

This hands-off style can lead to gaps in a server or cook’s knowledge, or passing on bad habits from one employee to the next. When you standardize your training, you give each new employee the tools they need to succeed in their role and minimize frustrations across the board. Trainers should know exactly what their trainees need to focus on each day, and when it’s appropriate for the trainee to begin taking on more responsibility. 

Recognize Milestones

Back in the day when employees stayed with a single employer for decades, it was common to receive a handsome gift, like a gold watch. While no one is suggesting you start handing out Rolexes, a token of appreciation at special milestones can help build morale. 

You could offer a cash bonus at certain retention dates, or create a method of recognition that fits your company culture. One restaurant had a special t-shirt made for each annual milestone  so employees could collect them throughout the years. The t-shirts were handed out at periodic all-staff meetings in front of the entire team to thanks and applause.

Have Your Employee’s Backs

You know that the past two years have been difficult on restaurants. Servers, hosts, and bartenders have been on the front lines, trying to do their jobs in the face of constantly shifting safety rules and frustrated customers.

Some managers are inclined to take the customer’s side in a confrontation to avoid negative publicity. But when you do this, you tell an employee that their word is worth less than a stranger’s. It does irreparable damage to staff morale and destroys trust between employees and management. If a guest is behaving inappropriately, management should show their support for their team, rather than rewarding a guest’s bad behavior.

Ask for Employee Feedback

Your employees have thoughts and opinions about what is working well at your restaurant, and what is not. Why not ask them to help you make the restaurant better? You could do anonymous polling and surveys, so employees can offer their views openly. 

You can also conduct stay interviews, checking in with top performers to assess happiness levels and see where they see themselves within the organization. Showing that you value your employee’s feedback can go a long way to building loyalty and mutual respect in your restaurant.